Trump Administration to Launch 'Trump Accounts' on July 4, Providing $1,000 to Newborns

The Trump administration is launching 'Trump Accounts' on July 4, 2026, offering a $1,000 government contribution to newborns born during Donald Trump's second term. Six million people have already registered for the program, which allows tax-deferred stock market investments managed by private firms. While billionaires like Michael Dell and major corporations have pledged billions to support the initiative, critics argue the program exacerbates the wealth gap and fails to offset cuts made to Medicaid and SNAP.

Trump Accounts program launch

• ▪Six million people have signed up for Trump Accounts as of July 2, 2026, according to a U.S. Treasury Department spokesperson
• ▪The Trump administration plans to launch Trump Accounts on July 4, 2026, to boost financial independence for American children
• ▪The Trump Accounts program was created under the One Big Beautiful Bill Act passed in 2025

Account mechanics

• ▪Trump Account funds are invested in U.S. equity index funds managed by private firms and cannot be accessed until the beneficiary turns 18
• ▪Private index funds managing Trump Accounts must charge annual fees of no more than 0.10%
• ▪Withdrawals from Trump Accounts before age 59.5 for unqualified reasons will incur a 10% early withdrawal penalty
• ▪The U.S. Treasury Department will contribute $1,000 to Trump Accounts for children born between January 1, 2025, and December 31, 2028
• ▪To qualify for the $1,000 government contribution, a child must be a U.S. citizen with a Social Security number

Contribution rules

• ▪Parents can contribute up to $2,500 annually in pretax income to their child's Trump Account
• ▪Individual contributions to Trump Accounts are capped at $5,000 annually per child, excluding government and charitable contributions
• ▪Employer contributions to Trump Accounts are capped at $2,500 annually and count toward the $5,000 yearly limit

Billionaire donations

• ▪Sanjay Mehrotra, CEO of Micron Technology, pledged a $250 million donation to Trump Accounts
• ▪Ray Dalio and Barbara Dalio pledged $75 million to provide $250 to 300,000 children under age 10 in Connecticut
• ▪Michael and Susan Dell pledged $6.25 billion to provide $250 to children age 10 or under who do not qualify for the government's $1,000
• ▪Brad Gerstner pledged to donate $250 to Trump Accounts for every child under age 5 in Indiana

Corporate donations

• ▪Uber, Intel, IBM, Nvidia, and Steak 'n Shake plan to add Trump Account contributions to their employee benefits packages
• ▪Bank of America, JPMorgan Chase, and Micron Technology committed to matching the government's $1,000 contribution for qualifying accounts

Safety net cuts

• ▪The legislation creating Trump Accounts cut funding for social safety net programs, including Medicaid and the Supplemental Nutrition Assistance Program
• ▪Critics argue Trump Accounts widen the wealth gap because affluent families can afford the maximum contributions while poor families cannot